The crashing prices and struggling crypto firms show the signs of the sluggish market. While at the same time, companies exploring more and more horizons of crypto space indicates the growth and possibilities of innovations in the crypto market.
A San Francisco-based blockchain lending firm Dharma Labs has built up its first product towards offering loans named Dharma Lever. It is a company which has developed the Dharma protocol for decentralized lending businesses. The product is now under a closed alpha release. The product developed by the blockchain firm is designed to enable instant margin loans for traders and high-volume crypto holders.
The blockchain lending firm declared on Feb. 5 that in its funding round, Dharma Labs has secured $7 million from big investors like Coinbase Ventures for its project Dharma Lever. The other company which led the funding round was Green Visor Capital along with the participation of a fintech-focused venture capital firm, Polychain Capital, Y Combinator, Passport Capital, Blockchange and Ripple’s Xpring fund.
Here, the CEO at Dharma, Nadav Hollander gave his statement,
“In the same way that Uber made it both easy and cheap to get a ride from anywhere in the world, we believe Dharma Lever will make accessing margin lending easy and cheap for anyone in the world.”
Moreover, the head of the marketing team of Dharma Max Bronstein, talked about the new project. He reportedly claimed that Lever will operate as a decentralized smart contract alternative to Genesis Global Trading. This product will provide smooth service of peer-to-peer crypto lending by enabling two parties of a loan to be discoverable. Dharma Lever is made to eliminate the requirement of the middleman with the use of blockchain. He details,
“Investors can take out loans against a number of different assets in sheer minutes, counter-party risk can be eliminated by smart contracts, borrowers can freely move their principal anywhere they’d like, and most importantly, all of this can be done at almost half of the cost offered by traditional lenders.”
The company emphasizes one more advantage of Dharma Lever noting that it will surely give better loan rates as compared to other offers on exchanges.